USDCAD TECHS: Trading Closer To Its Recent Highs
- RES 4: 1.4200 Round number resistance
- RES 3: 1.4167 50.0% retracement of the Feb 3 - Jun 16 bear leg
- RES 2: 1.4111 High Apr 10
- RES 1: 1.4080 High Oct 16
- PRICE: 1.4056 @ 08:08 BST Oct 17
- SUP 1: 1.3959/3884 20- and 50-day EMA values
- SUP 2: 1.3810 Bull channel base drawn from the Jul 23 low
- SUP 3: 1.3727 Low Aug 29 and a bear trigger
- SUP 4: 1.3689 Low Jul 28
The trend outlook in USDCAD is unchanged, a bull cycle remains intact and the pair is trading closer to its recent highs. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4111, the Apr 10 high, and further out, scope is seen for an extension towards 1.4167, a Fibonacci retracement. First key support is 1.3884, the 50-day EMA. Support at the 20-day EMA lies at 1.3959.
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GILTS: Opening calls
- Gilt calls, 91.45/91.50.
These DO NOT take the CPI into account, given that Sonia is a tick up, small upside risk, but should be close.
USDCAD TECHS: Strong Sell-Off Exposes Support
- RES 4: 1.4019 38.2% retracement of the Feb 3 - Jun 16 bear leg
- RES 3: 1.3925 High Aug 22 and the bull trigger
- RES 2: 1.3890 High Sep 11
- RES 1: 1.3803 20-day EMA
- PRICE: 1.3751 @ 07:56 BST Sep 17
- SUP 1: 1.3727 Low Aug 29 and a bear trigger
- SUP 2: 1.3709 61.8% retracement of the Jul 23 - Aug 22 bull cycle
- SUP 3: 1.3658 76.4% retracement of the Jul 23 - Aug 22 bull cycle
- SUP 4: 1.3637 Low Jul 25
A sharp sell-off in USDCAD this week has resulted in a break of the 20-and-50-day EMAs. This undermines a recent bullish theme and a continuation lower would expose key short-term support at 1.3727, the Aug 27 low. A break of this level would strengthen a bearish threat. For bulls, resistance levels to watch are; 1.3890, the Sep 11 high, and 1.3925, the Aug 22 high and bull trigger.
US TSY OPTIONS: TYX5 112.50 Puts Lifted
TYX5 112.50 puts paper paid 0-21 on 4K.
